Bloomberg has released a new 2020 cryptocurrency outlook report, revealing just how bullish the company’s analysts are on Bitcoin.

The report focuses on the digital scarcity of the first-ever cryptocurrency, Bitcoin, noting that current active addresses suggest that the price of Bitcoin could approach $12,000 in the short term.

Bitcoin is gradually becoming "digital gold"

Bitcoin and the cryptocurrency asset class are only a little over a decade old, but have already been put to the ultimate test.

The principles of its design will immediately prove their value, otherwise they will remain obscure.

Bitcoin was designed by Satoshi Nakamoto who had digital gold in mind, he tried to make an asset that had the best features of gold but could exist digitally and out of reach of third parties.

Serving as a digital store of value immediately provides Bitcoin with advantages that gold cannot.

A new report from Bloomberg highlights these properties, including digital scarcity and a thriving network of active addresses .

Bloomberg Researchers: Bitcoin Ready to Break $12,000

Bloomberg researchers are growing increasingly bullish on the first-ever cryptocurrency, with the agency saying the current global economic environment is a perfect recipe for rising asset prices.

“ Unparalleled easing by global central banks and rising gold prices are enduring trends that favor bitcoin prices, ” the report reads.

Bloomberg researchers believe that the asset’s low volatility makes the transition from a speculative asset to digital gold possible, with recent volatility low compared to major stock indexes such as the Nasdaq.

They said the asset’s capped supply of just 21 million BTC and steadily growing demand suggest that scale is “ headed toward price appreciation .”

The report noted that Bitcoin demand indicators are moving upward along with gold ETFs and XAUUSD spot prices.

The report also claims that the standard value of Bitcoin by market capitalization is close to $12,000, based on active Bitcoin addresses.

The data also shows that Bitcoin is maturing and becoming less volatile than the stock and commodity markets. Bloomberg said the comparison to crude oil shows that “the nascent Bitcoin is designed to reduce the impact of fiat currency exchange rates and relative deflation, as well as excess primary commodities.”

They further concluded that Bitcoin is “ a bull struggling for a breakout ,” claiming that the asset is approaching resistance at $13,000.

A break above that level would allow the cryptocurrency to attempt to retest its all-time high, which peaked at $20,000 during the crypto hype bubble.

But what do Bloomberg researchers think of other cryptocurrencies? Without a Bitcoin bull run, they suggest, “ oversupplied crypto markets stand little chance of appreciation .”

Bloomberg essentially claims that a new Bitcoin bull run is near and the entire cryptocurrency space could see surging prices once again.

The original article comes from bitcoinist and was translated by the Bluemountain Labs team. The English copyright belongs to the original author. Please contact the translator for Chinese reprint.